Preqin StudySshows Record AuM in Alts, Sweden Second Largest in Europe

Stockholm (HedgeNordic) – Amundi and alternative data specialist Preqin together produced and published a research on the alternative assets markets in Europe. According to their findings, as of 30 September 2017, Europe-based alternative assets under management reached €1.48trn, having grown by 8.8% year-on-year from €1.37trn.

Among alternatives, some €601bn were in hedge funds (40.6% of all alternative assets in Europe as of September 2017), €507bn in private equity, €131bn in infrastructure, €106bn in real estate, €108bn in private debt and the remaining in natural resources.

By country, the UK gathered 51.8% of alternative assets in Europe, followed by France, with 8.6%, Sweden with 5.3%, Switzerland (3.5%) and Germany (3.1%) at the end of September 2017.

Mixed news for hedge funds

Data analysed around hedge funds by Amundi and Prequin suggests mixed news for the hedge fund industry, remaining the largest alternative asset class used in Europe with €404bn of total capital invested by 1,101 Europe-based hedge fund investors in 2018.

It shows Europe-focused hedge funds have outperformed all hedge funds and public market indices by 6.33% over a five-year annualised period. Nonetheless, they have underperformed the rest of the market by 8.21% in Q1 2018.

Regarding Europe-based hedge funds’ net inflows, they amounted to €26.9bn over last year in contrast to the €32.7bn outflows observed in 2016. 52% of Europe-based hedge fund managers saw net inflows over Q1 2018 but despite of €8bn in outflows reported in the same period.

Other findings see Sweden as the second largest hedge fund market in Europe in terms of AUM, with approximately €36bn,

Preqin’s chief data officer Elias Lastis noted that the hedge fund industry is evolving as for the first time in 2017, with 190 liquidations of Europe-based hedge funds exceeded launches, which amounted to 179. The trend is likely to pursue in 2018, he added.

Other findings see Sweden as the second largest hedge fund market in Europe in terms of AUM, with approximately €36bn, roughly 0ne tenth of first ranked United Kingdom (€355bn) and just before France and Switzerland with €29bn and €25bn of local investors’ assets invested in hedge funds respectively.

The study also focuses on top performing hedge funds by country in Europe (see table below).

Country

Top performing hedge fund

Company

3-y annualised return (as of March 2018)

UK

Japan Synthetic Warrant Fund – USD Class

Dejima Asset Management

34.21%

Switzerland

Teleios Global Opportunities fund

Teleios Capital Partners

21.94%

Germany

Wermuth Eastern Europe L/S strategy

Wermuth Asset Management

11.77%

Netherlands

Mint Tower Arbitrage Fund

Mint Tower Capital Management

6.50%

Italy

Finint Bond Fund – Class A

Finanziaria Internazionale Investments

7.44%

France

Orsay Merger Arbitrage Fund – USD Share Class 3

Oddo BHF Asset Management

11.21%

Sweden

Gladiator Fund

Max Mitteregger Asset Management

13.99%

Spain

Ben Oldman Special Situations Fund

Ben Oldman Partners

9.74%

Norway

AAM Absolute Return Fund – Class B (NOK)

Oslo Asset Management

23.59%

Denmark

Danske Invest Hedge Fixed Income Strategies Fund – EUR

Danske Invest

10.19%

Source: Preqin, Amundi, 2018

The map below shows the number of Alternative Assets Fund Managers and Investors Active in Alternatives in Europe by Region:

About Author

Kamran has been working in the financial industry since 1994 and has specialized on client relations and marketing. Having worked with retail clients in asset management and brokerage the first ten years of his career for major European banks, he joined a CTA / Managed Futures fund with 1,5 Billion USD under management where he was responsible for sales, client relations and operations in the BeNeLux and Nordic countries. Kamran joined a multi-family office managing their own fund of hedgefunds with 400 million USD AuM in 2009. Kamran has worked and lived in Vienna, Frankfurt, Amsterdam and Stockholm.
Born in 1974, Kamran today again lives in Vienna, Austria.